REPORTABLE SEGMENTS (Tables)

3 Months Ended

Mar. 31, 2025

Schedule of Net Sales and Expenses by Reporting Segment

The following tables show net sales, segment expenses, Segment Adjusted Operating Income (Loss) and other segment information for the Company’s reportable segments. The segment expenses do not include non-comparable items that are excluded in the calculation of Segment Adjusted Operating Income (Loss):

Net Sales and Expenses by Reportable Segment


	Three Months Ended March 31, 2025
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Inter-segment eliminations		Total
Net sales - customers	$	1,454	$	1,356	$	555	$	150	$	—	$	3,515
Net sales - inter-segment	—		5		6		—		(11)		—
Net sales	$	1,454	$	1,361	$	561	$	150	$	(11)	$	3,515

Cost of sales	1,151		1,079		492		150
Selling, general and administrative expenses - R&D, net	41		29		99		11
Selling, general and administrative expenses - Other	27		10		14		11
Other segment items1	—		—		(1)		—

Segment Adjusted Operating Income (Loss)	$	235	$	243	$	(43)	$	(22)


	Three Months Ended March 31, 2024
(in millions)	Turbos & Thermal Technologies		Drivetrain & Morse Systems		PowerDrive Systems		Battery & Charging Systems		Inter-segment eliminations		Total
Net sales - customers	$	1,572	$	1,416	$	430	$	177	$	—	$	3,595
Net sales - inter-segment	2		3		6		—		(11)		—
Net sales	$	1,574	$	1,419	$	436	$	177	$	(11)	$	3,595

Cost of sales	1,275		1,124		386		171
Selling, general and administrative expenses - R&D, net	42		32		100		12
Selling, general and administrative expenses - Other	28		9		13		11
Other segment items1	1		1		(1)		(2)

Segment Adjusted Operating Income (Loss)	$	228	$	253	$	(62)	$	(15)

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1 Other segment items include other income and expenses to derive at segment adjusted operating income.

Schedule of Segment Earnings Before Interest and Income Taxes

Segment Adjusted Operating Income (Loss)


	Three Months Ended March 31,
(in millions)	2025		2024
Turbos & Thermal Technologies	$	235	$	228
Drivetrain & Morse Systems	243		253
PowerDrive Systems	(43)		(62)
Battery & Charging Systems	(22)		(15)
Segment Adjusted Operating Income	413		404
Corporate, including stock-based compensation	61		65
Impairment charges	39		—
Restructuring expense (Note 5)	31		19
Costs to exit charging business	26		—


Intangible asset amortization expense	17		17

Merger and acquisition expense, net	2		2
Loss on sale of businesses	1		—
Adjustments associated with Spin-Off related balances	(3)		—

Other non-comparable items	2		6
Equity in affiliates’ earnings, net of tax	(10)		(5)
Unrealized and realized loss on equity and debt securities	—		2
Interest expense, net	12		5
Other postretirement expense	3		3
Earnings from continuing operations before income taxes and noncontrolling interest	$	232	$	290

Segment information


	Depreciation and amortization				Long-lived asset expenditures1				Total assets
(in millions)	Three Months Ended March 31, 2025		Three Months Ended March 31, 2024		Three Months Ended March 31, 2025		Three Months Ended March 31, 2024		March 31, 2025		December 31, 2024
Turbos & Thermal Technologies	$	40	$	43	$	41	$	40	$	3,882	$	3,693
Drivetrain & Morse Systems	49		52		24		35		3,949		3,872
PowerDrive Systems	43		36		44		88		2,873		2,792
Battery & Charging Systems	16		12		8		22		1,006		1,082
Total	148		143		117		185		11,710		11,439
Corporate2	7		7		2		5		2,120		2,554
Consolidated	$	155	$	150	$	119	$	190	$	13,830	$	13,993

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1 Long-lived asset expenditures include capital expenditures and tooling outlays.
2 Corporate assets include cash and cash equivalents, investments and long-term receivables and deferred income taxes.